Minister assures that rice supply is adequate<\/p>\n
JAKARTA (JP): State Minister of Food Ibrahim Hasan assured
\nyesterday that the country's rice supply is adequate despite the
\nsignificant decline in production due to this year's drought.<\/p>\n
He told reporters after meeting with President Soeharto at
\nBina Graha Presidential Office that the National Logistics Board
\n(Bulog) currently holds a stock of 800,000 tons of rice, while
\n"we are waiting for more rice from abroad as loan payments".<\/p>\n
"We expect that by December, an additional 500 tons of rice-
\nloan payments will arrive," he said.<\/p>\n
Ibrahim, who is concurrently the chairman of Bulog, said that
\nthe repayment of offshore rice-loans has already reached 400,000
\ntons.<\/p>\n
The minister warned that the drought, which has forced a drop
\nin Indonesia's rice production this year, will likely continue
\naffecting the commodity until February.<\/p>\n
In Indonesia, the rainy season usually starts in September and
\nlasts until April.<\/p>\n
The Central Bureau for Statistics announced last week that the
\ncountry's unhusked rice production decreased by 4.4 percent to
\n38.3 million tons in the January-August period from 40 million
\ntons in the same period of last year.<\/p>\n
Director General of Food of the Ministry of Agriculture Amrin
\nKahar said on Tuesday that this year's rice output is estimated
\nto fall short of the government's target by 3.69 percent.<\/p>\n
Amrin explained that the country will likely produce only
\n46.40 million tons of unhusked rice this year, instead of the
\ntargeted 49.17 million tons.<\/p>\n
Ibrahim also said yesterday that Bulog will soon launch a
\nwide-scale market operation to buy rice at a price level above
\nthe official floor price.<\/p>\n
"We will buy husked rice for Rp 665 (about 30 U.S. cents) per
\nkilogram in this market operation," he said.<\/p>\n
Ibrahim did not state when exactly the operation will start.<\/p>\n
The government decided early this month to raise the floor
\nprice of husked rice by 11 percent to Rp 657 beginning next year.<\/p>\n
About 90 percent of Indonesia's population, the world's fourth
\nlargest, consume rice as their main staple. Indonesia became
\nself-sufficient in rice in 1984 after being the world's largest
\nrice importer for decades.<\/p>\n
The government announced recently that rice production must
\nincrease by six percent next year to maintain that rice self-
\nsufficiency.<\/p>\n
The objective is expected to be met by encouraging farmers to
\nuse urea-tablet fertilizer. (hdj)<\/p>",
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